This case illustrates the real problem of conflicts between board responsibility to shareholders v stakeholders in the corporate setting. Specifically, the case highlights potential conflicts that can arise when shareholders are not the company’s sole stakeholders and how this fact can complicate corporate decision making. It becomes even more complex when the lines defining ownership are blurred and the concentrations of power within the various entities impact the decision-making process. The goal is to understand how a board manages conflicts of interest.
1. Identify and describe in detail the stakeholders and the interests of each stakeholder and the resulting conflicts of interest that are apparent in this case. Think about the readings as you answer this question.